In an exclusive interview with ANI, Nripendra Misra, the former Principal Secretary to Prime Minister Narendra Modi, revealed that the Prime Minister was initially against the introduction of ₹2000 denomination notes during the demonetization exercise in November 2016. Misra stated that PM Modi did not consider the ₹2000 note as one meant for the poor, recognizing that it had more hoarding value than transactional value. However, due to the limited time frame for demonetization and the lack of capacity to print smaller currency notes, the Prime Minister reluctantly agreed to the issuance of ₹2000 notes.
According to Misra, the decision to print ₹2000 notes was made because the withdrawn ₹500 and ₹1,000 notes needed to be replaced within a specific period. The printing capacity at that time was insufficient, and the proposal to print ₹2000 notes was put forward to meet the deadline. Although PM Modi was not enthusiastic about the idea, he consented to it for practical reasons. However, the Prime Minister maintained a clear belief that the ₹2000 note should be discontinued once there was sufficient printing capacity in the future.
Misra highlighted that since 2018, ₹2000 notes had not been printed, and the Reserve Bank of India (RBI) had not been reintroducing soiled ₹2000 notes received from banks. The recent announcement by the RBI to withdraw ₹2000 denomination currency notes confirmed the decision made earlier. The notes will remain legal tender, but citizens can deposit them into their bank accounts or exchange them for notes of other denominations at any bank branch until September 30, 2023. The exchange can be made up to a limit of ₹20,000 at a time, starting from May 23, 2023.
The introduction of ₹2000 notes in 2016 aimed to meet the immediate currency requirements of the economy after the withdrawal of ₹500 and ₹1,000 notes. However, as other denominations became available in sufficient quantities, the printing of ₹2000 notes ceased in 2018-19. The value of ₹2000 notes in circulation has declined significantly since then.
PM Modi’s initial reservations about the ₹2000 notes and his preference for tackling black money align with the government’s efforts to combat illicit financial activities. The decision to withdraw these notes indicates a shift in the currency landscape and emphasizes the importance of promoting transparency and financial integrity.
